Officials struggle to find money for road improvements

AUSTIN - Despite broad agreement that repairing and improving Texas highways will cost more money than it has in the past, legislators split Monday on whether now is the time to impose new transportation taxes or fees.

House members attending the annual Texas Transportation Forum said lawmakers were unlikely to support increasing transportation revenues. Senators, however, said this seemed unavoidable.

"There are times when taxes are the conservative thing to do," said Sen. Kevin Eltife, R-Tyler.

Across Texas, transportation officials estimate they need an additional $3 billion for new construction and $1 billion for maintenance. With state and federal coffers tight, conference attendees said, new revenue sources are the best solution - but a tough sell to lawmakers.

"It should be looked at as an investment, not an expense," said William Thompson Jr., former New York City controller, a speaker at the transportation forum.

The recent template for getting projects moving in Texas has been development agreements between the Texas Department of Transportation and regional officials, and $13 billion in borrowing. State transportation Commissioner Ted Houghton said the three most recent Houston-area projects to proceed - construction of part of the Grand Parkway and improvements to U.S. 290 and Texas 288 - advanced through partnerships with the Harris County Toll Road Authority and other adjacent counties.

But now "the credit card is maxed" and new taxes are likely, Eltife said.

"I was fine before I came to this office, and if they kick me out of office I'll be fine," Eltife said to applause from the crowd.

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Texas has not increased its 20-cent-per-gallon excise tax on gasoline in 22 years. Over that time, pump prices have increased four-fold, cars and trucks have become more fuel-efficient, and construction costs have soared.

Panelist Glen Hiemstra, founder of futurist.com, said a 25 percent increase in Texas' gas tax would add a nickel per gallon to the cost.

"Would anybody notice?" Hiemstra asked.

House members said they would notice. Rep. Larry Phillips, R-Sherman, chairman of the House Transportation Committee, said he doesn't see significant support in the chamber for new road revenues.

So far, proposed changes to the tax rates have lost out to ideas for restructuring. Lawmakers have filed a number of proposals, including a bill by Sen. Robert Nichols, R-Jacksonville, to direct all motor vehicle sales taxes to transportation needs.

Nichols is scheduled to speak to the transportation forum Tuesday.

Pushing improvements

Dedicating certain tax revenues to transportation would create gaps in other areas, and resistance emerged to previous proposals to strip law enforcement of some gas tax revenues. About $300 million annually from the gasoline tax goes to police agencies, so lawmakers would have to find that money elsewhere to avoid reducing law enforcement budgets.

Texas businesses, notably those in the energy sector, are pushing for transportation improvements. Increased drilling puts a greater demand on county and state roads that aren't built for heavy machinery.